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Subject:  Re: Estimating future needs Date:  8/8/2003  5:15 PM
Author:  SloanT Number:  226 of 5363

FMO:For those living entirely off their assets, a portfolio composed of primarily the S&P 500 and U.S. bonds is suicidal in my opinion. It is not diversified (being 100% in large cap U.S. stocks and bonds, whose price movements are highly correlated) and the volatility will have you wetting your pants and making moves which are not in your best interests. This approach also requires you to sell your seed corn due to current high valuations and low yields. Any approach dependent on the liquidation of principle is dangerous IMO.

I think you are painting stocks with the same broad strokes that are so irritating when they are applied to real estate (which is more often the case on TMF). Any investment, improperly managed, can turn into a nightmare.

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